Europe & Africa Market Update 24 Apr

Most bunker benchmarks at European and African ports have gained, while bunker demand is strong in West African ports.

IMAGE: The Monjasa Hunter operates in West Africa. Monjasa

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Gibraltar ($21/mt) and Rotterdam ($20/mt), and down in Durban ($235/mt)
• LSMGO prices up in Gibraltar ($42/mt) and Rotterdam ($32/mt)
• HSFO prices up in Durban ($46/mt), Gibraltar ($18/mt) and Rotterdam ($17/mt)
• B30-VLSFO price up in Gibraltar ($67/mt) and Rotterdam ($29/mt)

Although most bunker benchmarks have mostly recorded gains over the past day, Durban’s VLSFO price recorded the steepest decrease. A lower-priced VLSFO stem of around 150-500 mt, fixed at $1,271/mt, has potentially weighed the port’s benchmark down.

Conversely, the VLSFO price off Namibia’s Walvis Bay has gained $34/mt. Nonetheless, VLSFO supplied off Walvis Bay continues to trade at a discount of around $380/mt to Togo’s Lome.

As for LSMGO prices in Angola’s Luanda, Ivory Coast’s Abidjan, and off Namibia’s Walvis Bay, the grade has recorded gains in the range of $60-65/mt over the past session.

Demand for bunker fuel has significantly increased in West Africa since the beginning of the Iran conflict, major regional supplier Monjasa said this week.

Buyers seeking to bunker any fuel grade in Lome or off Walvis Bay are advised to enquire around a week in advance, a trader told ENGINE.

A supplier in Angola’s Luanda said VLSFO is out of stock and replenishments are expected by end of month, while LSMGO supply is stable.

Brent

The front-month ICE Brent contract has gained by $2.29/bbl on the day, to trade at $106.29/bbl at 09.00 GMT.

Upward pressure:

Brent crude’s price continues to trade north amid sustained geopolitical escalation in the Middle East.

Yesterday, Iran’s Revolutionary Guard Corps (IRGC) seized two container ships – the Panama-flagged MSC Francesca and the Liberia-flagged Epaminondas – while firing gunshots at a third vessel in the Strait of Hormuz.

The news has put upward pressure on Brent’s price, breaking well above $100/bbl once again, according to market analysts.

“The IRGC escorted the seized ships toward the Iranian coast, again terrorizing this vital chokepoint that carries a significant portion of the world’s oil and LNG flows,” Price Futures Group’s senior market analyst Phil Flynn said.

Downward pressure:

Commercial US crude oil inventories increased by 1.9 million bbls to about 466 million bbls in the week ending 17 April, according to data from the US Energy Information Administration (EIA).

“That’s [EIA figures] still about 3% above the five-year average for this time of year — keeping the crude market well-supplied and balanced,” Flynn said.

A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.

Meanwhile, a ceasefire extension between Israel and Lebanon has also capped some of Brent’s price gains today.

By Nachiket Tekawade and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online